Seafire: Set up for success - ABG

Continued strong demand translates into growth and profitability
New financing done, meaningful EPS and FCF ahead
8x '23e EV/EBITA or 11x '24e P/E, ~35% below peers


Q1: Strong operating result and expected one-offs

Seafire delivered a strong Q1 with sales of SEK 269m, growing 60% y-o-y (14% organic). Adj. EBITA was SEK 24m for a margin of 9%, up 1.5pp y-o-y. The Industrial components segment drove both organic growth and profitability, delivering 24% organic growth and an EBIT margin of 12.8% (8.4%). The Products segment also improved margins y-o-y, from 1.6% to 4.1%, but shrunk -6% organically, mainly due to Nordbutiker, which suffered from the poor Q1 weather, and its slimmer product portfolio. Demand remains strong for most subsidiaries except Nordbutiker and DOFAB, but even these saw accelerating demand in late Q1 and the beginning of April. The quarter contained one-offs amounting to SEK -27m connected to the refinancing and main-market listing processes. This coupled with the lower interest payments going forward (SEK ~11m less) means reported EBT will improve by SEK 38m going forward, compared to Q1.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/Seafire/Equity-research/2023/4/seafire---set-up-for-success/